Dow tops 32,000 as $1.9T coronavirus aid package clears Congress

The Nasdaq Composite slipped

U.S. equity markets rallied Wednesday as the U.S. House of Representatives approved President Biden’s $1.9 trillion COVID-19 relief bill.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 33831.24 -306.07 -0.90%
SP500 S&P 500 4137.53 -35.89 -0.86%
I:COMP NASDAQ COMPOSITE INDEX 13826.576189 -123.64 -0.89%

The Dow Jones Industrial Average rose 462 points, or 1.45%, to close above 32,000 for the first time while the S&P 500 advanced 0.6% and the Nasdaq Composite slipped 0.04%.

The gains come as the 10-year yield slid 2.5 basis points to 1.52% after the consumer price index rose 0.4% in February, in line with estimates, and after an auction saw adequate demand.

Traders continue to watch the benchmark yield amid concerns Biden’s relief package, which is expected to pass through the House and be signed into law before Sunday, will help bring back inflation that has been absent since the 2008 financial crisis. The current level of the 10-year yield is higher than the S&P 500’s 1.49% dividend yield, giving investors an alternative to stocks.

Ticker Security Last Change Change %
QQQ INVESCO QQQ NASDAQ 100 335.09 -4.20 -1.24%

Mega-cap technology stocks, many of which have entered corrections or bear markets, remain in focus as investors look to enter at heavily discounted prices.

Additionally, Tesla saw early gains after posting its biggest market cap increase in history, $106 billion, on Tuesday. This after several days of selling.

Ticker Security Last Change Change %
TSLA TESLA, INC. 719.22 -24.90 -3.35%

Elsewhere, GameStop Corp. shares were on track for a sixth straight day of gains with a 109% jump already over the course of the winning streak. The stock was halted several times by the New York Stock Exchange for volatility.

Ticker Security Last Change Change %
GME GAMESTOP 150.73 -7.61 -4.81%
AMC AMC ENTERTAINMENT HOLDINGS INC 9.97 +0.19 +1.94%

Another meme stock, AMC Entertainment Holdings Inc., was set to report earnings after the close of trading.

AMC CEO HAS THIS MESSAGE FOR REDDIT TRADERS

Ticker Security Last Change Change %
GE GENERAL ELECTRIC CO. 13.40 +0.04 +0.34%
BA THE BOEING CO. 234.24 -1.76 -0.75%

In deals, General Electric Co. reached a $30 billion deal to sell its aircraft-leasing unit to Ireland’s AerCap Holdings NV. The deal will pay GE $24 billion cash and give the conglomerate an approximately 46% stake in the combined company. The deal puts Boeing in focus as well.

Ticker Security Last Change Change %
CPB CAMPBELL SOUP CO. 49.59 -0.95 -1.88%

On the COVID-19 vaccine front, Biden's team announced plans to buy an additional 100 million doses of J&J's vaccine.

J&J GETS 100M VACCINE ORDER FROM WHITE HOUSE

Ticker Security Last Change Change %
JNJ JOHNSON & JOHNSON 165.13 -1.56 -0.94%

And CVS Health Corp. and Target Corp. announced the vaccine will be available in roughly 600 stores located within the big-box retailer.

Ticker Security Last Change Change %
TGT TARGET CORP. 205.44 -1.19 -0.58%
CVS CVS HEALTH CORP. 76.08 -0.12 -0.16%

In earnings, Campbell Soup Co. forecast net sales would decline by between 2.5% and 3.5% during the current fiscal year. The company reported inline quarterly earnings and revenue that fell short of Wall Street estimates.

Ticker Security Last Change Change %
RBLX ROBLOX CORP. 69.67 -2.09 -2.91%

Meanwhile, video-game maker Roblox Corp. opened for trading on the New York Stock Exchange at $64.50 a share, up 64% from its $45 reference price.

In commodities, West Texas Intermediate crude oil rallied 43 cents to $64.44 per barrel and gold ticked up $4.90 to $1,721.50 an ounce.

Europe markets were mixed with Britain’s FTSE 100 down 0.07% while Germany’s DAX 30 and France’s CAC 40 added 0.71% and 1.11%, respectively.

In Asia, Hong Kong’s Hang Seng index rose 0.47%, Japan’s Nikkei edged up 0.03% and China’s Shanghai Composite slipped 0.05%.